Francisco Partners, a global investment firm that partners with technology businesses, has bought Sumo Logic, a software-as-a-service (SaaS) analytics company focused on cloud-native applications, for approximately $1.7 billion.

Sumo Logic offers analytics and insights across observability and security services for their customers’ cloud-native applications. Sumo Logic stockholders will receive $12.05 per share in cash. At closing, Sumo Logic will become a private company and will look to expand its market opportunity as well as drive its services and growth.

“Sumo Logic is ideally positioned to capitalize on the large and growing demand from enterprises for observability and security solutions,” states Brian Decker and Evan Daar, partners at Francisco Partners. “Its leading, cloud-native, analytics platform provides the scalability and insights required as applications and data proliferate in today’s digital world. We look forward to partnering with Sumo Logic to drive accelerated growth and continue its long heritage of product innovation.”

Morgan Stanley & Co. LLC is serving as financial advisor to Sumo Logic, and Wilson Sonsini Goodrich & Rosati, Professional Corporation is serving as legal counsel. Kirkland & Ellis LLP is serving as legal counsel to Francisco Partners.